US Dollar Forecast

Analysts at MUFG have raised their forecasts for the British Pound in light of a sustained fall in UK Covid-19 cases which they say will ultimately allow the Bank of England to raise interest rates in 2022.

Fears over global growth slowing and the impact of the Delta variant look overblown, meaning the Dollar's recent safe-haven bid is unlikely to last according to new currency market research.

The Pound-to-Dollar rate must navigate an oncoming Bank of England (BoE) policy decision and an important U.S. jobs report, the headlights of which could potentially have a dampening impact on the British currency though recently improving demand Sterling may mean a renewed attempt on the 1.40 level is just a matter of time.

The Pound-to-Dollar exchange rate was rattled last week and now risks becoming confined to a much reduced trading range over the coming days, with the outcome hinged on the market’s reading of Wednesday’s Federal Reserve  decision and a pending flurry of U.S. economic data.

The Pound-to-Dollar exchange rate enters the new week risking a steady slide toward April lows around 1.37, which could condemn Sterling to a range-trade between there and a burgeoning resistance at 1.39 if expectations of Federal Reserve policy continue to offset for GBP/USD the signs of a shift at the Bank of England.

The Pound-to-Dollar exchange rate enters the new week in the higher end of its likely range and could be volatile over the coming days as the market digests commentary from the Federal Reserve (Fed) while processing economic data from the UK, U.S. and other major economies.

The Dollar is finding support amidst renewed investor anxieties over medium-term global growth according to new research, suggesting those watching this currency will have more than just the U.S. Federal Reserve and inflation expectations to consider.

"Dollar bears, surfing a wave of easy Fed policy, are running out of time. If the US can escape the clutches of the zero-rate bound, it will earn itself a significantly stronger dollar," says Kit Juckes, Macro Strategist at Société Générale.

"Dollar strength creates tremors across markets," says Chris Beauchamp, Chief Market Analyst at IG, touching on the key global currency theme as the turn of month approaches.

 The Dollar’s current bought of weakness has seen it steadily devalue since the start of January.

The US Dollar weakened after the release of Non-Farm Payrolls (NFPs) on Friday Due to data showing a softness in wages.

ING Bank’s latest set of forecasts highlights the continued rise in the Dollar against almost all its major counterparts.

Expectations concerning impending interest rate rises at the US Federal Reserve are forecast to keep the US dollar supported, however this support will ultimately prove temporary.

The dollar could recovery over coming months as overly-pessimistic markets are forced into accepting up to two Federal Reserve interest rate rises in 2016 it is argued.

Any strength in the pound to dollar exchange rate strength is forecast to be temporary according to analysts at Westpac.

On Wednesday the 13th of April a monthly comparison of Core CPI is forecast to show prices rose 0.2% in March, down from the 0.3% in the previous month.

Fears Donald Trump might win the presidential election are increasingly impacting on the greenback.

UniCredit provide four reasons why they believe the USD will struggle in 2016. But others remind us why they are forecasting a notably stronger dollar over coming months.

The pound to dollar exchange rate (GBP/USD) has formed a base argue analysts at Lloyds Bank who forecast a sustained, albeit slow, recovery.